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Utah Senate and House of Representatives Pass Key WCF Insurance Legislation

February 13, 2015

Today, legislation affecting WCF Insurance, sponsored by Senator Curtis S. Bramble and Representative James A. Dunnigan, passed the Utah Senate and House and was sent for enrolling, before being presented to the Governor for his signature. The bill enjoyed broad acceptance and moved through the legislature quickly. In fact, not a single vote was cast against the bill in committee hearings or on the floor of the House and Senate.

WCF Insurance's board of directors and management encouraged this legislation – S.B. 63 Workers’ Compensation Fund Amendments –because it will allow WCF Insurance to better meet the needs of its policyholders and other Utah businesses. The bill had significant support from WCF Insurance policyholders and agent and association partners.  

Key elements of S.B. 63 are:

1.   WCF Insurance policyholders will elect board members rather than the governor appoint them. This change will be effective for directors whose terms expire after January 1, 2016. As a result of this change, WCF Insurance will be subject to federal income tax.

2.   Certain restrictions on WCF Insurance and its subsidiaries will be removed from the insurance code. WCF Insurance will be able to seek licenses to write workers’ compensation insurance in other states beginning on May 12, 2015.

3.   Also beginning on May 12, 2015, WCF Insurance's subsidiaries will operate in Utah and other states as for-profit, taxable business enterprises. This will allow a subsidiary, if approved by the respective state insurance regulators, to sell workers’ compensation insurance and other property and casualty insurance products.

As important as these changes are, most things will not change:

1.   WCF Insurance will still have enabling legislation and will remain a nonprofit, quasi-public corporation.

2.   WCF Insurance will remain Utah’s carrier of last resort and will continue to insure risks that are not able to obtain coverage through other markets.

3.   WCF Insurance will still be owned by its Utah policyholders and will continue its long-standing policy of profit-sharing with its policyholders by paying policyholder dividends.

4.   WCF Insurance will remain a strong advocate of workplace safety and a good corporate citizen.

WCF Insurance does not currently have plans to underwrite any insurance coverage other than workers’ compensation insurance. In making strategic decisions about products and other states, WCF Insurance will continue to act in the best interest of its policyholders, who are the owners of the company.

Contact:  Peggy Larsen
               plarsen@wcf.com
               385.351.8328

 

 

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Insurance coverage in all states other than Utah is provided by Advantage Workers Compensation Insurance Company, a wholly-owned subsidiary of WCF Mutual Insurance Company, doing business as WCF Insurance. Advantage is domiciled in Indiana; NAIC number: 40517. Administrative office: P.O. Box 571918, Salt Lake City, UT 84157-1918.
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